All part of the Donald’s grand plan- The US has the economic power and he will use it to bring balance to the trade shaking up the world’s largest 2-way trade relationship

US tariffs on European goods threaten to shake up the world's largest 2-way trade relationship - AP News
  • Context:The European Union awaits a decision from President Trump regarding potential tariffs on its goods, threatening a significant trade relationship valued at trillions of dollars.
  • These tariffs, if implemented, could dramatically increase costs for consumers and companies on both sides of the Atlantic, sparking retaliatory measures from the EU. The core issue lies in trade imbalances and regulatory differences.
  • Detailed Summary:
    • Trade Volume:The EU-U.S. trade relationship is the most important globally, with goods and services valued at $2 trillion in 2024, averaging $4.6 billion daily.
    • Trade Imbalance:The U.S. has a trade deficit with the EU, largely due to a goods imbalance of approximately $233 billion, although the U.S. has a surplus in services.
    • Tariff Threats:Trump initially imposed a 20% import tax on EU-made products, later reduced to 10% but threatened to raise it to 50%. The EU is prepared to retaliate with tariffs on American products.
    • Key Issues:
      • The U.S. criticizes EU agricultural barriers, particularly health regulations.
      • Trump has also criticized EU value-added taxes (VAT).
    • Potential Impacts:
      • Higher tariffs could lead to increased prices for U.S. consumers.
      • Companies like Mercedes-Benz and Campari Group are considering their pricing strategies.
      • Some companies, like LVMH, may shift production to the U.S. to avoid tariffs.
    • Perspectives:
      • Economists warn of negative consequences.
      • Trump aims to stimulate American manufacturing with tariffs.
      • EU officials express a desire for a deal, but are prepared to retaliate if needed.
      • AP News


3 thoughts on “All part of the Donald’s grand plan- The US has the economic power and he will use it to bring balance to the trade shaking up the world’s largest 2-way trade relationship”

  1. Trump has yet to realise and fully understand the destruction his policy on tariffs is already creating on the US economy. Agriculture in particular the maize (corn) producing sector has lost enormous export trade share due to reciprocal tariff imposition by countries which previously would have sourced product from USA. This coupled to the persistence in using Genetically Modified seed has closed down access to markets in other countries as well as having huge impact on processors within the sector many already having elected to reduce production capacity as the market continues to contract. The greater part of this devastation impacting most on states which returned huge majorities in favour of Trump as a Republican President!

    In terms of how tariffs will affect Scotland, the Scotch Whisky industry export trade to USA alone was worth over £1 billion, (latest figures released February 2025) the revenue from that of course going into the coffers of our colonising neighbour, England.

    The Elephant in the room no one wants to talk about is of course, BRICS, whose purchasing and trading power could well bring the Dollar as a currency to its knees and with it the then not so bold Donald!!

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    1. Exactly: I proposed this in my blog post. You commented. I understand an approach has not yet been made. Sarah is not against it but other’s are yet to be convinced. I still believe this is the way ahead. But deaf ears and blindness are traits prevalent in Scots.
      The use of genetic modified produce is being phased out. The influence of Robert Kennedy as Health Secretary is already making inroads and rattling cages.

      Scottish Independence – An Impossible Dream – But There is a Way

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